The Specter of Global Stagflation
Is the world facing a revival of stagflation, that deadly combination of rising inflation and stagnating growth? Given the need for currency appreciation and monetary tightening in emerging-market economies, a negative supply shock – say, a war with Iran – coupled with a deflationary global demand shock (as housing bubbles go bust) is all that is required.
New York – Will rising global inflation lead to a sharp global economic slowdown? Even worse, will it revive stagflation, that deadly combination of rising inflation and negative growth?
New York – Will rising global inflation lead to a sharp global economic slowdown? Even worse, will it revive stagflation, that deadly combination of rising inflation and negative growth?